RBP Insights

RBP^®

The revenue growth necessary to support the current stock price. Required Business Performance^® is calculated using third-party valuation models including discounted cash flow that use the current stock price as the primary input.

RBP^® Probability

The likelihood that management will deliver the Required Business Performance^® to support the stock price. It is calculated by fitting the company’s historical revenue growth to a distribution, then finding the company’s Required Business Performance within this historical distribution.

RBP^® Methodology

Uses third-party valuation models including discounted cash flow to determine what the stock’s current price implies in terms of future free cash flow and revenue (Required Business Performance^® ) as well as the calculation of the likelihood that management can deliver the Required Business Performance^®, known as RBP^® Probability.

Guggenheim RBP^® Blended Index^SM and Guggenheim RBP^® Large-Cap Defensive 100 Index^SM are owned by Guggenheim Partners Investment Management, LLC and its affiliates (collectively, "Guggenheim"), and are licensed by New Age Alpha. These indices are calculated by S&P Dow Jones Indices. New Age Alpha calculates the Required Business Performance (RBP) Probabilities used in the index construction.

Using the RBP^® Methodology, we calculate the likelihood management can deliver the Required Business Performance, known as the RBP^® Probability for every stock in our universe. Stocks are then selected for inclusion in the index based in part on their RBP^® probabilities.